Advance tax payout: RBI opens two-day borrowing window

Mumbai: The Reserve Bank on Friday opened a special a two-day borrowing window for banks under the marginal standing facility (MSF) to help meet the rising fund need from corporates for advance tax payments.

"As the liquidity conditions are expected to tighten on account of advance tax payments commencing from mid-December, the Reserve Bank has decided to offer funds to the banks for two days through MSF on December 14 and 16," the Central Bank said in a statement in Mumbai on Friday evening.

All other terms remain unchanged. Advance tax payments are due to be paid by December 17. On Thursday, to ease liquidity conditions, the RBI had announced bond buyback worth Rs 10,000 crore.